As businesses continue to struggle from the effects of COVID-19, there are government funding options available, as the Economic Aid Act was signed into law on Dec. 27.
It includes an expanded employee retention tax credit, and second round of the Payroll Protection Program (PPP.)
IMPACT, an organization for ironworkers, broke down the program for its members, "Cares Act 2.0," on a recent webinar; the information is applicable to auto glass businesses as well.
Cassandra Langley, of Lescault Walderman Accounting, a firm that focuses specifically on the construction industry, went over some of the opportunities available to businesses.
Langley outlined the Economic Injury Disaster Loan (EIDL), designed to provide relief to businesses currently experiencing a loss of revenue due to COVID-19. It provides a low-interest, 30-year maturity loan that is not forgivable.
“The company must have substantial economic injury,” said Langley. “This generally means the business must be suffering in order to take this.”
Another option is the Employee Retention Tax Credit (ERTC.)
“You can go back and retroactively get it for 2020,” she said. “You have to show a 50% drop from 2019 to 2020, or were shut down as non-essential by the federal government.” A number of window film companies fall into this category.
The ERTC 2021 only applies to 2021 payroll, and Langley pointed out it has a lot of differences compared to the 2020 version.
“Now, it is a 20% revenue drop in a quarter-to-quarter comparison,” she said. “You have a little more potential to possibly qualify for this.”
Companies have a possibility of receiving...